Industry at a glance*

Franchising in 2014-15:

Revenue $168.7bn

Average Growth 2010-2015: 1.2%

Projected growth 2015-2020 2.6%

Businesses 1,165

International franchises are on the increase, with a growing number of overseas franchises entering the Australian market. However, numerous master franchises that enter the Australian market end up failing.

The majority of these businesses fail because operators place too much focus on selling the deal, rather than expanding into the new country. Other franchises fail due to a lack of preparation for the Australian market and with little regard for market forces.

Prospective franchises can avoid potential failure by ensuring that the first store established in a new market is company-owned and returning a profit before franchises are sold. While the Australian franchise market is considered small on an international scale, the entry of large foreign players such as Costco and Aldi into the Australian market has spurred greater interest among other operators.*

Franchising began in Australia in the 1960‘s. Since then franchising has spread out to include most business sectors. Australia has a highly regulated industry with its own association, the Franchise Council of Australia, and a mandatory Franchising Code of Conduct. For many entrepreneurs franchising has become the preferred business model.

Over the last 30 years, Franchise Systems Group has been assisting many businesses to launch and expand their operations.

We have the expertise to make your expansion into Australia straightforward and seamless. You benefit from a business that can provide all of the necessary skills for growth. We will assist with financial modelling, government and regulatory compliance, documentation, mandatory workplace health and safety requirements, assist in recruiting franchises, and guide you through the cultural influences that might affect your business.